July 21, 2022

Mark Achler (MATH Venture Partners) - How to Exit Right

44 minutes

My guest today is Mark Achler, who is a serial entrepreneur and Managing Partner at MATH Venture Partners. Recently he published his book that he co-wrote with Mert Iseri called Exit Right. which is about how to position and think about a successful exit way before it happens. So on this episode, we discuss how to Exit Right.

What were your biggest learnings from those interviews in “Exit Right”

Trust - we wish CEOs would come to us before

Is there misalignment between VCs and founder/CEO

How should you go about picking the right investors?

Seems like there’s kind of a one way street when it comes to acquisitions with VCs and founders. It’s ok if the VC thinks about it and as it analyzes investing in certain companies, what an exit could look like, but founders aren’t allowed to talk about it or bring it up at all when they pitch because it means they “aren’t focusing on the growth of the business”. Do you both think there is a disconnect and a certain awkwardness that exists in these discussions?

When should founders start to think about building relationships with corporate development teams?

What were your learnings after you conducted these interviews and conduct this research project?

In the FAIR framework, you emphasize how culture and values are critical for success. But it’s hard to know if the culture is the right culture for the team. How do you suggest founders understand the culture of the potential acquirer?

On the fit question, what do you think about culture? How do decisions get made? What are your values? Is there a place where you want to live?

Waterfall distribution - how much money goes through which share of class

Should founders accept money from corporate VCs?

We also talk about being aligned with your VCs. Of course, VCs are looking at a particular exit horizon. It could range from 5-10 years. Of course, it’s hard to know how the company is going to pan out and when you should start shopping for exits when it makes sense. How do you make sure you have alignment as a founder when you’re approaching VCs?

How do you make sure it’s not a phishing expedition?

I had on a founder who was building the business for acquisition and what that meant to him was growth at all costs, but it didn’t happen and he had to pivot to make the business sustainable and profitable. When you do build relationships with corporate development, should that impact how you build your business?

What are ways founders can ensure they aren’t going on a fishing expedition?

What are common mistakes founders make in the diligence process?

What’s one book that has inspired each of you personally and professionally?

What’s one piece of advice that you have for founders?

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